Africa’s biggest mobile operator, MTN, is exploring an exit from Iran after the dramatic ousting of Irancell’s chief executive officer, a decision taken by the majority shareholder without informing the South African Group.
It’s understood that the top executives at MTN are incensed by the removal of Irancell CEO Alireza Rafiei by majority shareholder Kowsar Sign Paniz (KSP), which has links to the Iranian state, without MTN’s knowledge, despite it holding a 49% stake in the state-owned network operator.
According to Bloomberg, Rafiei angered Iranian authorities when he took about two hours to block phone calls after being ordered to join a nationwide communications shutdown on January 8.
His ousting has further frustrated MTN, which has been trying unsuccessfully to exit Iran.
Sunday World has it on good authority that MTN Group chief executive Ralph Mupita spent the past three years holding talks with Middle Eastern institutions to explore possible options of selling the 49% stake in Irancell to focus all resources on growth opportunities across Africa.
But a withdrawal from the Persian Gulf state has been hampered by restrictive sanctions imposed by the US in 2018, which prevent MTN from properly overseeing operations or extracting money from the country.
According to Bloomberg, the telecommunications shutdown in Iran has choked off information about some of the biggest demonstrations since the 1979 revolution, as people took to the streets to protest soaring inflation and government corruption. The news agency quoted a UN expert who estimated this week that at least 5 000 civilians were killed by government forces. The internet blockade, now in its third week, has cut off more than 90 million people from the outside world.
The MTN leadership was only officially informed of Rafiei’s axing this week. He has since been replaced by a military veteran, Mohammad Hossein Soleimanian.
The group, however, is disputing the termination on the grounds that due governance processes were not followed by KSP, which owns 51% shares in the joint venture with the South African. MTN, which does not participate in Irancell’s operational decisions, argues that they should be consulted when the company’s CEO is appointed or dismissed.
An MTN Group insider told Sunday World that top executives initially dismissed rumours of Rafiei’s axing, assuming it was fake news, but later learned with shock when they were officially informed by the board of Irancell after the decision had been taken.
“Everyone has been saying MTN is complicit. We don’t have control over this stuff; we can’t be held liable for it.”
The source pointed out that MTN’s minority shareholding at Irancell meant that while KSP was responsible for day-to-day operations, the removal of a CEO needed the consent of minority shareholders.
“We are minority shareholders and don’t have a say in operations, but under normal circumstances when you hire and fire the CEO, that is a board matter. The minority shareholder gets a notification and can exercise the right to comment or not.
“We only found out after they appointed (another) CEO. We are saying it cannot be,” asserted the insider. “All of a sudden we get a resolution they [KSP] came with to say we are appointing a new [Irancell] CEO. We are disputing lack of process in dismissing the CEO.”
A spokesperson for MTN refused to comment.
The mobile operator has held a minority stake in Irancell since 2006. US sanctions, which were tightened after May 2025, have also resulted in Iran being excluded from Society for Worldwide Interbank Financial Telecommunication (Swift), an international money transfer system. These measures have frozen MTN’s investment in Iran, making it difficult for potential buyers to structure or complete a transaction.
According to the source, parties that have expressed interest in the Irancell stake have cited the sanctions as a major barrier to concluding any deal with MTN. These restrictions limit the movement of funds and increase legal and regulatory risks for investors considering entry into the Iranian market.
MTN still intends to follow its strategy to leave the Middle East. In 2020, it resolved to simplify its portfolio and focus on its pan-African strategy.
The group has since disposed of its interests in MTN Yemen, MTN Afghanistan and exited Syria after regulatory actions and pressure from the Assad regime made operations there untenable. “We abandoned Syria because it was exactly the same circumstances… it was not working anymore. Iran is getting close to that. We don’t want to keep having to do that to markets.
“MTN needs to decide if we still want to stay and our reputation suffers, or we walk away. That will have to be a board decision. Our investors’ biggest criticism they have is, ‘Why are we still there?’ It could end up with us leaving,” said the source.
